In General,as the Number of Servers in a Waiting Line

question 38

Multiple Choice

In general,as the number of servers in a waiting line system increases,

• A)service cost increases and waiting cost decreases.
• B)service cost decreases and waiting cost increases.
• C)both service cost and waiting cost increase.
• D)both service cost and waiting cost decrease.

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Definitions:

Marginal Expenditure

The additional cost incurred from producing or purchasing one more unit of a good or service.

Average Expenditure

The average amount of money spent per unit of time, often calculated for goods, services, or a combination of both by consumers or businesses.

Monopsonist

A market condition where there is only one buyer for a product or service, giving the buyer significant power over prices.

Competitive Buyer

A buyer in a market where numerous purchasers compete to acquire goods or services, often leading to more favorable prices.